Increased rent vs. the cost of moving

However, there is one crucial factor that is worth keeping in mind. And this is that a small increase in your tenants’ monthly rent may not come anywhere near the cost of moving.

Latest research suggests that it costs almost £1,200 to move from one rental property to another. This covers deposits, agent’s fees and removal costs.

A £20 increase in monthly rent, meanwhile, would only cost a tenant £240 extra each year.

On this basis, it would take the tenant five years of staying put before they spent the same amount of money as they would moving.

And what about the London rental market?

Well, the sum is even greater in London, according to the research by flat share website Spare Room.

It found that those in the capital spend £2,043 on moving from one rental property to another. A large proportion of this is the deposit, where the equivalent of six weeks rent upfront is often required.

Other common charges include administration costs and fees for tenancy agreements and credit checks. Many of these are non-refundable, the research found.

The market has become so competitive in some areas that so-called ‘reservation’ fees are being charged.

Non-refundable fees are common

The research also claimed around three quarters of tenants must budget for fees, most non-refundable, with more than a fifth charged fees for reserving a room.

It also found that almost three out of 10 Londoners pay upwards of £300 in fees, while 15 per cent pay more than £400.

With such high charges becoming increasingly commonplace, landlords should feel reassured that a relatively small increase in their tenants’ rent will be viewed as less of an issue.

Matt Hutchinson, director of SpareRoom.co.uk, said: “The high cost of moving means that flexibility - one of the main benefits of flat sharing - is starting to suffer.”

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